Wesfarmers Limited · ASX:WES
Wesfarmers — Debt Investor Presentation (2024)
21 slides from Wesfarmers's debt investor presentation, 2024
Slide 1: 2024 Full-Year Results Debt Investor Update
2024 FULL-YEAR RESULTS Debt Investor Update
Slide 2: Group Performance Overview
GROUP PERFORMANCE OVERVIEW 7 Wesfarmers
Slide 3: Wesfarmers Way
Wesfarmers Way Wesfarmers’ primary objective Anticipating the needs of our Looking after our team is to deliver a satisfactory return customers and delivering members and providing a safe, to shareholders. We believe it is competitive goods and services fulfilling work environment only possible to a
Slide 4: 2024 Full-year highlights
2024 Full-year Maintained focus on highlights responsible long-term management Revenue NPAT up 1.5% to up 3.7% to Portfolio is well- Benefits from proactive $44.2b $2.6b positioned to deliver strong growth and returns over the long term focus on productivity and efficiency • High quality businesses
Slide 5: Divisional highlights
Divisional highlights Bunnings Kmart Group WesCEF Officeworks Sales Earnings1 Sales Earnings Revenue Earnings Sales Earnings $18.9b $2,249m $11.2b $958m $2.7b $440m $3.4b $208m ↑ 2.3% ↑ 2.6% ↑ 4.1% ↑ 24.6% ↓ 16.9% ↓ 34.2% ↑ 2.3% ↑ 4.0% • Performance highlights the • Significant earnings growth • Str
Slide 6: Focus on long-term value, consistent with our objective
Focus on PEOPLE long-term value, FY24 11.0 consistent with total recordable injury our objective frequency rate (TRIFR) and a continued focus on safety 3.8% Indigenous employment1, maintaining employment parity CLIMATE AND COMMUNITIES ENVIRONMENT FY24 43% FY24 women in Board and 5.4% Leadership Team
Slide 7: Group performance summary
Group performance summary Year ended 30 June ($m)1 2024 2023 Var % Revenue 44,189 43,550 1.5 EBIT 3,989 3,863 3.3 EBIT (after interest on lease liabilities) 3,753 3,644 3.0 NPAT 2,557 2,465 3.7 Basic earnings per share (cps) 225.7 217.8 3.6 Return on equity (R12,%) 31.3 31.4 (0.1 ppt) Operating cash
Slide 8: Working capital and cash flow
Working capital and cash flow NET WORKING CAPITAL CASH MOVEMENT • Divisional operating cash flows increased 4.0%, with divisional cash realisation Year end 30 June ($m) 2024 2023 of 101%1 Receivables and prepayments (153) 41 – Reflects disciplined net working capital management at Bunnings Inventory
Slide 9: Capital expenditure
Capital expenditure CAPITAL EXPENDITURE • Gross capital expenditure of $1,076m, down 16.5% Year end 30 June1 ($m) 2024 2023 Var % – Lower capex largely due to lower spend on store building projects in Bunnings Bunnings Group 268 405 (33.8) and lower development spend on the Covalent lithium project,
Slide 10: Group outlook
Group outlook • Wesfarmers remains focused • The Group’s retail divisions • The performance of the • Wesfarmers maintains a strong on long-term value creation remain well positioned to meet Group’s industrial businesses balance sheet and portfolio of and continues to invest to customer demand for va
Slide 11: Balance Sheet and Debt Management
BALANCE SHEET AND DEBT MANAGEMENT
Slide 12: Strong and resilient balance sheet
Strong and resilient balance sheet Key principles NET FINANCIAL DEBT ($B) 1 • Maintaining a prudent capital structure and strong credit rating is important to 6 Wesfarmers 5 • Strong credit ratings 4 – Moody’s A3 (stable outlook) 3 – S&P A- (stable outlook) 2 1 Full-year update 0 -1 • Maintained sig
Slide 13: Pro-active debt management
Pro-active debt management • Continued focus on optimising debt profile and liquidity headroom provided by DEBT MATURITY PROFILE1 bilateral bank facilities through: $m – Extension of bilateral bank facilities to extend and spread out debt maturity 2,000 profile 1,500 1,000 – Reduction of total avail
Slide 14: Debt capital markets diversity
Debt capital markets diversity DCM GEOGRAPHICAL SOURCES1 DEBT BY TYPE1 41% 43% 59% 57% Capital Markets Sustainability-linked Financing Drawn Bank Facilities Other funding sources • Ongoing commitment to diversify funding sources, including the domestic and international debt capital markets • Austra
Slide 15: Sustainable finance update
Sustainable finance update March 2020 June 2021 October 2021 A$400m sustainability-linked loan A$1b sustainability-linked bond €600m sustainability-linked bond • Achieving proportional representation for Aboriginal • Increasing the use of renewable electricity in the Group’s retail divisions (Bunnin
Slide 16: Management of lease portfolio
Management of lease portfolio • Lease liabilities totalled $6.5b and represented 58% of Group fixed Lease liabilities ($m) FY24 FY23 financial obligations as at 30 June 2024 Bunnings Group 3,402 3,568 • Average remaining committed lease term of 4.0 years1 (FY23: 4.1 years) Kmart Group 2,237 2,341 –
Slide 17: Dividends and capital management
Dividends and capital management Key principles SHAREHOLDER DISTRIBUTIONS1 • Dividend distributions determined based on franking credit availability, $/share current earnings, cash flows, future cash flow requirements and targeted credit metrics 5.00 • Maximising value of franking credits for shareh
Slide 18: Additional resources
Additional resources • Wesfarmers debt investor website https://www.wesfarmers.com.au/investor-centre/debt-investors • Wesfarmers sustainable finance website https://www.wesfarmers.com.au/investor-centre/debt-investors/sustainable-finance • Please email to the below address if you would like to be a
Slide 19: Glossary of terms (1 of 2)
Glossary of terms (1 of 2) Term AASB Australian Accounting Standards Board API Australian Pharmaceutical Industries Ltd b Billion Cash realisation ratio Operating cash flows as a percentage of net profit after tax, before depreciation and amortisation CO2e Carbon dioxide equivalent cps Cents per sha
Slide 20: Glossary of terms (2 of 2)
Glossary of terms (2 of 2) Term ktCO2e Kilotonnes of carbon dioxide equivalent LNG Liquefied natural gas LPG Liquefied petroleum gas m Million n.m. Not meaningful Interest-bearing loans and borrowings less cash at bank and on deposit and held in joint operation, net of cross-currency interest rate s
Slide 21: Wesfarmers
NY] Wesfarmers